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Step into your home, with IIFL Home Loans

Fulfill your dream of owning a home with IIFL Home Loans.

12655 views  29 Nov 2017

GHAR AAPKA LOAN HUMARA

"A man travels the world over in a search of what he needs and returns home to find it" - George A. Moore.

A house is the most coveted possession for all. With easy availability of housing loan and with interest rates so low, this dream has become a reality for several people.

The market for large home loans may be limping, but the affordable housing segment is booming and loans below Rs 10 lakh have surged 43% in the last fiscal. The rise in utilization of Rural Housing Fund and Urban Housing Fund is expected to further bolster the trend.

Overall housing loans grew by 23% while home loans above Rs 25 lakh saw a marginal decline of 1% during the last financial year, industry estimates show.

NHB has received Rs 9,000 crore under rural and urban housing fund from RBI, which will go towards building affordable housing.

Under PMAY, it is proposed to build 2 crore houses for urban poor including EWS and LIG in urban areas by 2022.

Moreover, the government has laid a strong foundation for affordable housing and has acknowledged the need for India to respond to the huge demand of affordable housing.

Central Government's announcement of new public private partnerships (PPP) model is also a great positive signal that Government wishes to promote private investments in affordable housing, in line with its vision Housing for All by 2022. This policy envisages eight PPP models including six for promoting affordable housing with private investments using government lands (which will have central assistance per house as CLSS on HL) and two involving private investment using private land (which will have central assistance of Rs 1.5 lakh per house). This is a great step to bring all stakeholders - Government, Developers and Lending Institution at one platform to increase the supply of affordable as well as incentivize the proposed owner of these homes.

As per a report of Cushman & Wakefield, there has been an increase of 10% in the number of units launched for affordable housing sector in year 2017.

Most Indians face a tough time in buying a house due to the vast gap between the demand and supply of houses in affordable sector. In spite of good income and affordability, they don’t get home loans and face rejection.

To help such unreached masses, we, at "IIFL Home Loans" bring forth "Swaraj Home Loans" a scheme which gives freedom from strict income documentation.

Under the government’s Credit Linked Subsidy Scheme for Middle Income Groups, beneficiaries may avail an upfront, maximum interest subsidy of Rs 267,000, Rs 235,000 and Rs 230,000 if household incomes are up to Rs 0.6 million, Rs 1.2 million and Rs 1.8 million per annum respectively. This is for first-time homebuyers and for loans disbursed for a period of one year with effect from January 1, 2017.

With the introduction of The RERA Act, 2017, an increase in demand is expected due to assured accountability and transparency. Under this Act, builders and developers cannot advertise or promote their project without mentioning a RERA registration number. The builders have to provide a 5-year warranty for any defect in the building and he is responsible for any defect in the house.

RERA, once stabilizes, will bring in great relief and support for all falling in its ambit, especially the organized lenders. The cost incurred while approving the project and then further monitoring it would be positively influenced because of the sector formalization.

If we talk about the supply side within the housing industry, the implementation of RERA will not only bring in more transparency and trust amongst the consumers but also streamline the sector in the long run. This will have an impact so deep that the real estate industry will undergo a massive transformation in coming days.

Buying a house on a home loan comes with multiple tax benefits that significantly reduce the tax outgo.

Here are the deductions that can be claimed for home loan:

Deductions Section Maximum Deduction Conditions
Principal 80c 1.5 Lakh house property should not be sold within 5 years of possession
Interest 24b 2 Lakh loan must be taken for purchase/construction of the new house and the construction must be completed within 5 years from the end of financial year in which loan was taken
Interest 80E 50,000 amount of loan taken should be Rs 35 lakh or less and the value of property does not exceed Rs 50 lakh
Stamp Duty 80C 1.5 Lakhs can be claimed only in the year in which these expenses are paid

Hence, with such positive changes, now is the perfect time to apply for home loan.